Drawing from innovation, purchasing tools and DOE-wide commodity agreements, an EM cleanup contractor at the Savannah River Site (SRS) has saved more than $124 million over the last six years.
Office of Environmental Management
December 20, 2022
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AIKEN, S.C. – Drawing from innovation, purchasing tools and DOE-wide commodity agreements, an EM cleanup contractor at the Savannah River Site (SRS) has saved more than $124 million over the last six years.
During the fiscal year that ended Sept. 30 alone, Savannah River Nuclear Solutions (SRNS) saved nearly $20 million.
“SRNS leveraged various cost savings initiatives, and the greatest savings are coming from use of the Supply Chain Management Center’s (SCMC) digital procurement tools and multi-site procurement agreements,” said David Dietz, SRNS supply chain procurement director. “I have to commend our people for their dedicated resolve to fully engage and use every resource available to meet and exceed our goals year after year.”
The SCMC, managed by Honeywell FM&T at the Kansas City National Security Campus, is a strategic supply chain program dedicated to simplifying the buying process to help enable savings for EM and National Nuclear Security Administration prime contractors like SRNS.
“We appreciate the collaboration and dedication SRNS consistently displays when it comes to strategic sourcing. The enterprise looks to your site as a leader,” said John O’Connell, SCMC Principal Customer Programs leader.
Founded in 2006, SCMC works collaboratively with the prime contractors to develop purchasing agreements that can be used by multiple sites across the DOE complex. This saves time by reducing duplication of effort, freeing up buyers to focus on site-specific needs. By leveraging a combined $5 billion in annual spending, SCMC can negotiate lower prices.
“We’re taking full advantage of the incredible savings opportunities through the SCMC and its ability to act as a hedge against rising costs,” said Dietz. “This practice — combined with shared procurement tools and apps, smart data analytics and advanced procurement training also provided by the SCMC — accounts for much of the impressive savings our SRNS team has been able to achieve.”
“Achieving cost savings through these strategic methods and tools is essential as we face an inflationary market with a host of global supply chain challenges,” said Jay Johnson, senior director, SRNS Contracts and Supply Chain Management. “But it’s not just about saving money, it’s about supporting small businesses, including our mentor-protégé businesses. The more money we save through strategic procurement practices, the more we can invest in these same companies.”
Local small business contracts valued at nearly $70 million were issued in 2021 within the five counties near SRS, according to Johnson.
SRNS serves as a major driver of economic growth in the greater Aiken and Augusta area and beyond through procurement contracts, local workforce development and encouraging innovation, he added.
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